Security deposit interest in Kentucky
No — Kentucky does not require landlords to pay interest on security deposits.
There is no interest to calculate — here is what does apply
Kentucky sets no interest requirement, so there is no figure to work out. The rules below are the ones that decide whether you get your deposit back in full, which is usually the larger sum anyway.
Deadline to return your deposit
Not specified. Where the tenant leaves owing no rent, the landlord must notify them at their last known address of any refund due; if there is no response within 60 days the landlord may keep the deposit. Where the tenant leaves owing the last month's rent and does not demand the deposit back, the landlord may apply it to the debt after 30 days.
Miss it and the consequences below start to apply.
What to do next
- Give your landlord a written forwarding address. Several states make the return duty conditional on it, and Kentucky's rules are summarised below.
- Photograph the unit at move-out, dated, before you hand back the keys. The dispute is almost always about condition.
- If the deadline passes, put the request in writing and cite Ky. Rev. Stat. Sec. 383.580. Keep a copy of what you sent and when.
Not legal advice. This is general information, not legal advice. Security deposit laws change and vary by jurisdiction. Verify with the cited statute or consult a licensed attorney in your state before taking action.
What does Kentucky law actually say?
Kentucky does not require landlords to pay interest on residential security deposits. The statute does require the deposit to be held in an account used only for that purpose at a bank or lending institution regulated by Kentucky or a federal agency, and the prospective tenant must be told the location of that account and its account number, but nothing obliges the landlord to pay the tenant any interest earned. There is no statutory cap on the deposit amount.
Before paying the deposit the tenant must be given a comprehensive written list of existing damage and the estimated repair cost, and has the right to inspect the unit to check its accuracy; both parties sign the list. The same process repeats at termination. If the tenant refuses to sign either list they must state their specific dissents in writing and sign that statement.
Where the tenant leaves owing no rent, the landlord must notify them at their last known address of any refund due; if there is no response within 60 days the landlord may keep the deposit. Where the tenant leaves owing the last month's rent and does not demand the deposit back, the landlord may apply it to the debt after 30 days.
What if your landlord does not comply?
No interest obligation, so no interest penalty. A landlord who did not hold the deposit in a separate account, or who did not provide both the initial and final damage listings, forfeits the right to retain any portion of the deposit. A tenant disputing the final listing may sue in District Court, but only over items they specifically dissented from in writing; a tenant who failed to sign or dissent cannot recover damages.